Indian space start-ups set to get ₹1,000cr funding from government
What's the story
The Indian National Space Promotion and Authorization Centre (IN-SPACe) is gearing up to make its first investment from a ₹1,000 crore venture fund within this fiscal year.
The agency is in the process of hiring a fund manager who will assess applications from start-ups looking for pre-series funding.
IN-SPACe Chairman Pawan Kumar Goenka disclosed these plans in an interview with Moneycontrol.
Investment approach
Investment strategy and equity plans
Goenka said that IN-SPACe is open to all kinds of space sector start-ups that demonstrate potential and have a good business plan.
The government will take equity in these start-ups with an exit strategy.
He explained, "The fund will work like any other VC fund. The only difference is that no other fund is focused on funding space start-ups...the plan is to stay invested for 12 years, which is a normal VC cycle."
Fund allocation
Aim to support 40 start-ups
The venture fund hopes to back some 40 start-ups with investments between ₹10 crore-₹60 crore, depending on their development path and long-term potential.
Goenka estimated the annual investment could be about ₹200 crore-₹250 crore, depending on the industry's requirements and growth opportunities.
He expects the fund to be fully operational by the April-June quarter of FY26.
FDI attraction
IN-SPACe's venture fund to attract FDI
Goenka believes the venture fund will help attract FDI into India's space sector, especially for start-ups and MSMEs.
He said, "As Indian investors watch where government funding is investing, FDI people also watch where we are investing, and they will come in then."
He further noted that about 10 companies have reached a stage where they could generate significant revenue during the next fiscal year.
Market growth
Indian space economy and global market share
Currently, the Indian space economy is valued at around $8.4 billion, which is a mere 2% of the global space market.
The Indian government hopes to grow this to $44 billion by 2033, including $11 billion in exports (7-8% of the global share).
Goenka also said that IN-SPACe has prepared a final draft of the space law, with consultations expected in the January-March quarter.
Infrastructure development
IN-SPACe's role in private space sector infrastructure
IN-SPACe is building infrastructure for India's private space sector to enable growth.
Goenka said, "ISRO will be busier in the next 10 years. The dilemma is how much support through its own infrastructure it can provide to the private ecosystem."
He added that IN-SPACe is already working on authorization applications from Elon Musk's Starlink and AmazonAmazon's Kuiper, having sought more information and clarification from them.